Mobile phone retailers across India are planning to observe October 2 as ‘No UPI Day’ in protest against the proposed Merchant Discount Rate (MDR) on certain UPI merchant payments. The campaign, organized by the All India Mobile Retailers Association (AIMRA), will see participating retailers temporarily halt acceptance of UPI payments and symbolically cover their QR codes with black cloth.
Why Are Mobile Retailers Protesting?
AIMRA states that the proposed MDR could significantly increase the financial burden on mobile retailers, especially those operating on thin margins. Under the new framework, a 0.4% MDR will apply to eligible person-to-merchant UPI transactions above Rs. 2,000, starting October 15, 2026. The charge is merchant-side only and will not be directly passed to consumers.
The association explains that a small retailer processing between Rs. 5 lakh and Rs. 30 lakh in UPI payments monthly could face additional costs of Rs. 2,000 to Rs. 12,000 per month. AIMRA estimates the overall burden on small mobile retailers across India could reach about Rs. 40 crore per month, or nearly Rs. 500 crore annually.
AIMRA Vice President and Delhi NCR President Tarvinder Singh emphasized that the protest is not against UPI or digital payments but against the additional financial strain on merchants.
What Will Happen on October 2?
Retailers participating in the protest are expected to refrain from accepting UPI payments for the day and may physically cover their UPI QR codes with black cloth. However, this is a voluntary action by individual mobile retailers and does not mean UPI services will stop nationwide. Other businesses will continue to accept UPI as usual.
Customers planning to purchase smartphones, accessories, or other products from physical mobile stores on October 2 are advised to carry cash or card payments as alternatives.
What Changes from October 15?
The October 2 protest precedes the implementation of the new MDR framework on October 15. Under the framework:
- Eligible person-to-merchant UPI transactions above Rs. 2,000 will attract a 0.4% MDR.
- Transactions up to Rs. 2,000 and person-to-person transfers remain exempt.
- Small merchants receiving up to Rs. 1 lakh per month through UPI QR payments are eligible for mandatory zero MDR.
The proposed MDR is a merchant-side charge, so customers will not see any direct impact. The protest is therefore focused on retailers’ concerns about the cost of accepting eligible UPI payments, not a call for a nationwide suspension of UPI.